Welcome from Round Rock.There is a meeting at Big Daddy's every Thursday at noon for those interested in quality networking.

Of course depending on the quality of the house.

That house has given us an opportunity to get some rehab experience and we have started building relationships with a really good electrician and a couple of other handyman types.From what I have seen on BP I should be looking to get involved with a local REI club to start building relationships but I have not been able to find anything around here.Hoping someone with local knowledge on BP can steer me in the right direction for attending some central california meet ups.My goal to build a stable quality REI business over the next few years and eventually transition into this full time.Glad to 'meet' everyone and I promise to stop lurking and get more involved on the BP site.

The quality of his rehabs is excellent.

The house isn't a high quality home and seems like a big ticket repair would wipe out any profits.Right now we are looking into purchasing investments that could potentially make us more money in the long term.

Because every home has different features, building material quality, and age of materials, (maybe the kitchen was renovated 5 years ago) the value and depreciation can vary greatly.The rule of thumb I've used for easy ACV calculation is if its a frame home depreciate by 1% per year and if its brick then its .5% per year, up to a max of 50% depreciation.

It looks like you would save money on the purchase, but what do you find the quality of the homes are?

I think you'll get a lot from the ultimate guide to tenant screening by Brandon Turner.

The rehab will probably not be as high quality.In the complete rehab property it will probably end up being less of an investment overall and you will get a higher quality rehab.We have mostly gone with the full rehab properties, as we feel it is a better value in the long run.

The way we structure our leases requires them to give us 45 days notice prior to move out and to allow us to start showing the unit least 1 once a week so we usually rarely have any gap from one tenant to the next.We haven't had any problem tenants yet since we screen quite thoroughly but if something were to happen, I guess we would prefer it to happen in an average updated home rather than one that's completely redone.Now if we were to start flipping, we would probably redo everything but for buy and hold in our target areas market rent, average to + average condition, seems to work well.We have seen some renovated units in our areas and they look a lot nicer but the rental premium isn't too much of a difference and it seems they take longer to rent out.